The Chattanooga Convention Center generated an estimated $78.1 million in economic impact during the 2024-25 fiscal year, driven by strong attendance, steady event bookings and continued growth in food and beverage revenue, according to its newly released annual report.
The report, detailed in a March 30 news release and accompanying publication, shows the downtown facility hosted more than 210,000 attendees across 345 events, including 55 conventions and tradeshows. Those visitors accounted for more than 71,000 hotel room nights, underscoring the center’s role as a key economic engine for Chattanooga’s tourism and hospitality sectors.
“This report details the success of the past year and underscores what is possible,” writes Carter Street Corporation Board Chair Deacon Hicks Armor in a message included in the annual report. “With strong bookings extending years into the future, it’s critical for the Chattanooga Convention Center to continue to evolve.”
Strong bookings, repeat events
Convention center leaders pointed to a mix of returning conferences and new events as a sign of continued momentum.
Repeat events included the Governors’ Conference on Tourism, FreightWaves’ F3 Future of Freight, Tennessee State Education Groups and McKee Foods gatherings, among others. The facility also hosted multi-state and regional meetings such as the Mid-South Rotary PETS training, which brought together participants from six Rotary districts across three states.
New conventions in 2024 included the Presbyterian Church in America General Assembly, Pave X and the Christian Counseling Education Foundation conference, according to the annual report’s event recap section.
In addition to conventions, the center saw growth in sporting events, hosting about 15 competitions ranging from bodybuilding to grappling and powerlifting. Large banquets and community gatherings – including the Chattanooga Area Leadership Prayer Breakfast, which drew more than 2,000 attendees – further contributed to the venue’s busy calendar.
Food, beverage revenue exceeds expectations
Financially, the convention center exceeded expectations in several key areas, particularly in food and beverage operations managed through its catering partner, Levy CHAT.
According to the report, food and beverage revenue reached 110% of budget, totaling more than $5.57 million, while net receipts came in at 125% of budget, or approximately $1.89 million.
Year-over-year, gross revenue increased by 7.5%, while net revenue rose 11.7%, reflecting both higher demand and improved operational efficiency.
Overall revenue streams included $6.67 million in food and beverage sales, $2.5 million in rental income and additional revenue from event services and miscellaneous sources, according to the financial recap.
Cost-saving measures also contributed to performance, including reductions in beverage costs, front-of-house spending and direct expenses.
Broader economic impact
While attendance numbers highlight activity inside the convention center, officials emphasized the broader impact on the community.
Visitors attending events spent money at hotels, restaurants and local businesses, reinforcing the center’s importance to downtown Chattanooga’s economy. The annual report notes that attendance figures represent “a portion of a broader and growing economic impact.”
“Our strength has always been our people, and Chattanoogans know how to roll out the welcome mat to guests in a way many communities can only imagine,” Armor says in the news release.
Planning for expansion, modernization
Despite strong performance, a recent third-party study suggests the convention center will need significant upgrades to remain competitive.
Conventions, Sports & Leisure International, an advisory firm specializing in convention and tourism facilities, evaluated the center’s operations and future potential. The study examined development opportunities, sustainability strategies, governance practices and ways to maximize economic and social benefits.
Among its key findings: the facility would benefit from a larger ballroom, additional parking and possibly a second hotel, along with other amenities to support future growth.
The Chattanooga Convention Center, now more than 40 years old, has already begun assessing expansion and modernization options.
“We’ve initiated a comprehensive assessment to evaluate the need for significant updates to our existing space while exploring the timing and scope of an expansion,” Armor writes in the annual report.
The Carter Street Corporation board is expected to review CSL’s findings further before deciding on next steps.
Sustainability and operations
The report also highlights operational improvements and sustainability efforts.
The center maintains rigorous sanitation protocols, including daily checklists and third-party inspections. It received top marks in health inspections, with scores of 100 for both kitchen and concessions operations.
Food waste reduction and redistribution remain a focus. Through partnerships with local organizations, including the CHAT Foundation and other groups, the center donates surplus food to community partners.
Of the facility’s total food waste – about 12.2 tons – roughly one-third was redirected to feed people, while smaller portions were used for animal feed.
Looking ahead
In addition to potential expansion, the convention center is pursuing several operational upgrades.
Plans include developing a new grab-and-go market, transitioning to a fully cashless property and implementing self-service kiosks to improve transaction speed and guest experience.
Capital improvements are also underway, including investments in cooling systems, roof repairs and general maintenance totaling more than $2 million.
Officials say these changes are aimed at maintaining the center’s competitiveness while enhancing service.
“As the facility that represents the city of Chattanooga and Hamilton County to so many guests,” Armor says, “we’re well-positioned as we plan for the future.”
Source: Chattanooga Convention Center